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Businesses going global

Kia ora and welcome to Kea’s online monthly report, showcasing our highlights for February 2021. 

This month we spoke to two emerging Kiwi companies, Litmaps and Nisa, about their respective journeys with Kea Connect and the positive impact they’ve seen from the connections made. We also followed up with a Kea Connect customer who initially reached out to Kea in 2019. He explains his key learnings when expanding offshore, and his plans to return to Aotearoa.

Our US, China and UK Regional Directors share their on-the-ground market insights for the past month. Finally, we highlight some of the partner and Kea Community content that has been resonating with our members.

  • GROWTH THROUGH KEA CONNECT
  • INSIGHTS FROM OUR GLOBAL COMMUNITY
  • KEA CONNECT: SPOTLIGHT ON TECH MARKET VALIDATION AND ETHICAL MANUFACTURING
  • IN CASE YOU MISSED IT
  • TRENDING AT KEA
  • UPCOMING EVENTS
  • CONNECTIONS THIS MONTH
  • HOW KEA CAN HELP


GROWTH THROUGH KEA CONNECT


Global growth through Kea Connect

During the early stages of Hoa Cleantech, co-founder Peter Algie sought advice from our Kea Community to launch his SaaS company in Canada and the US. Peter accessed invaluable advice through Kea Connect, refining how he structured the business. He spoke with us about the significant growth since our initial connection, why no-one makes a decision on numbers alone, and his plan to return to New Zealand.

READ MORE



INSIGHTS FROM OUR GLOBAL COMMUNITY

USA cityscape

USA

Our North America Director Ryan Mulcock discusses the impact of the change in administration and peaks in Covid-19 cases over the past month, with overall hopes for a fresh start. With remote working continuing into 2021, Ryan has also seen increasing openness in taking meetings from anywhere. Find out more in his February update.

READ MORE

London

UK & EUROPE

UK & Europe Regional Director Sara Fogarty discusses how businesses are continuing to navigate Brexit changes amidst lockdowns. Find out more about the changing consumer trends, such as a huge uptake in direct to consumer transactions in her monthly update.

READ MORE

CHINA

China signed the upgrading protocol of its Free Trade Agreement (FTA) with New Zealand (via video link) on Tuesday 26th January. The new commitments show a positive sign of the Sino-NZ partnership to combat the pandemic as well as to support multilateralism and free trade. The New Zealand Ambassador to China, Clare Fearnley stated, “both NZ and Chinese exporters will benefit from the upgraded trade rules through easier processes, reduced compliance costs, and expanded market access in some areas.”

Hainan also issued the industry catalogue for its Free Trade Port (effective starting from 1st Jan 2021), which focuses on tourism, modern services, and new & high-tech industries. This is a clear signal of China’s commitment for opening up the country further and facilitating free trade and investment.

The upgraded FTA gave us a head start to 2021, and we can certainly expect rapid growth in bilateral trade & investment between China and New Zealand this year. 

Finally, in our latest “Voices from the Kea Community” segment, we spoke to Jennifer Jin Ma about her near-instant Covid-19 related pivot, building unshakeable belief in her business, and learn from her experiences in “riding against the wave” across the past year.

Ciara Liu, Kea China Regional Director


GOVERNMENT INC UPDATE


The team at Kea are working alongside NZTE on new ways for growth-stage companies to access investment and have been exploring ways the Kea Community can contribute to APEC Leaders Week and Expo 2020. Additionally, content plans are in development to support the MBIE Digital Boost programme. 



SPOTLIGHT ON TECH MARKET VALIDATION AND ETHICAL MANUFACTURING


RESEARCH TOOL BOUND FOR US + MARKET VALIDATION

Connections made through Kea Connect played an instrumental role in helping early stage tech company Litmaps with global ambitions from day one.

Litmaps is a sophisticated tool built for researchers, to help them detail subject matter in a visual, timely and centralised way. Setting their global ambitions from the outset, market validation for the USA was a crucial part of their early development. Their co-founder and CEO was keen to speak with Kea members involved in academia, science and R&D.

Our Kea connections helped the Litmaps team understand how these sectors differ from New Zealand and provided additional feedback on the platform.

Kea Connect introduced Litmaps to a University Research Associate and Medical Writer, who were both happy to try the platform and provide feedback.


ETHICAL KIWI UNDERWEAR BRAND + MANUFACTURING INSIGHTS

Through Kea Connect, Kiwi-led ethical and sustainable underwear brand Nisa gained invaluable advice on manufacturing processes to expand their brand. 

Nisa, based in Wellington, is a business that has built itself on giving opportunities to women from refugee and migrant backgrounds, often as a first job in NZ. This has 2 key challenges:

  • Managing staff turnover and the potential impact on cost base
  • The ability to operate machinery for underwear/garment production limiting the pool of potential employees

In order to support managing the above, the business sought insights around leading manufacturing floor practices, production process, equipment requirements and advanced/precision manufacturing operations.

Kea Connect introduced the founder to a Sourcing and Production Professional, who provided invaluable advice that has shaped their future thinking. The founder shared the following fantastic feedback with us.

“He was the perfect person to talk to, he knew so much about garment manufacturing, thanks so much. The chat was helpful more just to learn things to watch out for that I didn’t know previously, and also to confirm that I’m going on the right path with moving to a new manufacturing process. The chat was invaluable!”



IN CASE YOU MISSED IT


SHINING THE SPOTLIGHT ON KIWI F&B

As part of their ongoing Made with Care campaign, New Zealand Trade and Enterprise have interviewed New York-based Kiwi chef Anthony Hoy Fong, who discusses how he pays tribute to his Kiwi roots while living and working offshore.

GROWTH IN THE CHINESE ECONOMY

In addition to the Trade Agreement Upgrade information, Ministry of Foreign Affairs and Trade have released their annual report on China’s GDP growth. The data for 2020 looks promising, with China looking to be the only top-20 economy to have grown last year.

EDUCATION MONTH IN FULL SWING

Xero is utilising their team of experts to help small businesses reach their potential in their annual Xero Education Month. There’s something for everyone, from accountants and bookkeepers to small business owners and the self-employed. The free, easily accessible content is available for all of February.


TRENDING AT KEA


COMING INTO 2021, THE ECONOMY IS LOOKING UP

Kea Community Independent Economist Tony Alexander shares his insights on the New Zealand economy’s growth in 2021, and the housing market’s reaction. READ MORE


ORBIS DIAGNOSTICS ON THEIR ULTIMATE PIVOT

We caught up with Brent Ogilvie of Orbis Diagnostics about their pivot from animal health to antibody testing for Covid-19, and how Kea Connect was able to help.  READ MORE


USING TECH TO INCREASE ACCESSIBILITY

We spoke to Kara Technologies founder Arash Tayebi about the benefits of wider sign language interpretation, and how we can utilise technology to increase accessibility.  READ MORE



UPCOMING EVENTS


We also have a number of virtual and in-person events over the next few weeks.

International Women’s Day is on March 8th, and we’ve teamed up with the UK New Zealand Business Women’s Network to host a series of events, including a panel and Q&A online event with World Class New Zealander and fashion designer Emilia Wickstead, World Class New Zealander and chef Monica Galetti, and CEO of London Bridge Hospital Janene Madden.

The Kea World Class New Zealand Awards are being held in Auckland on March 16th, we are looking forward to celebrating our world leading Kiwis who are making outstanding contributions to Aotearoa and the world.

Kea, in partnership with Kerridge & Partners, are hosting an event in Auckland for recently returned Kiwis together with senior executives from a range of New Zealand public and private sector organisations. The event will feature a panel discussion on how New Zealand companies can best leverage returning Kiwi talent.


KEA CONNECT: BUSINESSES SUPPORTED THIS MONTH


38

Number of Kiwi businesses assisted this month

36

Number of connections made this month

290

Number of connections made this year to date*

Kea Connect connections by region in January 2021

SECTORS KEA CONNECT SUPPORTED THIS MONTH

Kea Connect connections by sector in January 2021

*Year to date reflects financial year commencing 1 July 2020 to 30 June 2021

HOW KEA CAN HELP

Join

Join the Kea community, and stay connected to New Zealand, its people and businesses wherever you are in the world.

READ MORE

Jobs

Post job opportunities and attract internationally experienced Kiwi talent.

READ MORE

Kea Connect

Help Kiwi businesses explore their global potential through our worldwide community.

READ MORE


Filed Under: Businesses going global

The retail sector:

The retail sector — and more specifically e-commerce — is one of the few sectors that has truly benefitted from the pandemic, with brands experiencing an unprecedented surge in demand as consumers turned online following store closures. The nation’s top four e-commerce brands — Taobao, Tmall, Alibaba.com and JD.com — have all seen significant brand value growth. Taobao (brand value $53.3 billion) and Tmall (brand value $49.2 billion) have entered the top 10 for the first-time following 44 percent and 60 percent brand value increases, respectively.

WeChat emerges as China’s strongest brand, with a Brand Strength Index (BSI) score of 95.4 out of 100. As one of China’s home-grown tech successes it also enjoyed a rapid boost in brand value, increasing by 25 percent to $67.9 billion and jumping five spots to claim 2nd place among the nation’s most valuable brands. During the pandemic, WeChat ran several government-mandated health code apps to keep track of those traveling or in quarantine, providing access to real-time data on COVID-19, online consultations, and self-diagnosis services powered by artificial intelligence to over 300 million users.

International relations & education:

The Boao Forum for Asia celebrated its 20th Anniversary in April 2021. Governors from 29 countries discussed how to join hands to strengthen global governance and advance the belt and road cooperation at a time of change. During the BFA, an opening ceremony was held in Haikou to celebrate the collaboration of a China Study Center between Massey University and University of Hainan. The Study Center will be open to international students at Massey who cannot return to New Zealand due to closed borders.

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses going global, Global Kiwi Tagged With: Business Growth, China, Ciara Liu, Insights, Regional

The budget outlined continued support for businesses and individuals to take the UK through the remaining stages of the pandemic, with a focus on job retention schemes.  Extensions announced by the Chancellor of the furlough scheme until September has helped to protect 11.2 million jobs since the pandemic began.  Changes to this will see employers asking to put in contributions of 10% from July and 20% from August. 

For the hospitality and tourism sectors, the roadmap to opening is on track. Accommodation providers and indoor dining businesses will be able to operate with guests allowed to return from 17th May, looking towards 21st June when further restrictions should be lifted.  The reopening of businesses is expected to cause a re-balancing of consumer discretionary spend back to cafes, pubs and restaurants. 

The business rate holiday will continue until the end of June and business rates will be discounted for the remaining 9 months of the financial year, whilst the reduced 5% rate on VAT has also been extended for hospitality & tourism sectors.

The easing of lockdowns has seen an increase of store sales up 4.6 percent, as well as a 24 percent increase in store visits, the most stores have seen in 13 months. As we open up, there are plenty of opportunities for our New Zealand exporters to be a part of this continued growth. 

We are beginning a new phase of the “new-normal”.  In person meetings are starting to take place again and there is a trickle back into offices.  This month international travel has been announced with a green light for 12 countries who can enter the UK with no quarantine required on arrival, including New Zealand and Australia.  

We look forward to welcoming back out our friends, whānau and colleagues from home as international travel starts to slowly return.  Please remember to be well organised and sensitive to the changes and challenges that we are still facing here on this side of the world.  We may not want to shake your hand just yet, please don’t take this that we aren’t happy to see you or to do business, it’s been a long time between hugs and we’ll need a bit more time to get used to them again. 

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

Filed Under: Businesses going global, Global Kiwi Tagged With: Business Growth, Europe, Insights, Regional, Sara Fogarty, UK

Early May saw the unveiling of the Australian budget and an AUD1.2 billion expansion to the Australian Government’s digital economy strategy. The budget included measures to match skills training to areas of demand, and incentives to lure businesses and talented individuals to Australia.

Talk across the Tasman immediately turned to the potential impact on New Zealand’s NZD324 million, high growth video games industry, with media speculation that Australia’s introduction of a 30-40% tax incentive for this industry from July 2022 will drive businesses to relocate from New Zealand to Australia. To qualify for the tax offset, businesses would need to spend AUD500,000 or more on games projects in Australia, an offer which may tempt New Zealand businesses currently benefiting from growth in the NZD296 billion global gaming industry or those already considering expansion. 

Despite global lockdowns, over 95% of New Zealand creators’ income came from overseas audiences according to the industry, and gaming is being pitched as New Zealand’s next $1B industry, adding jobs for creatives and digital experts, provided the right initiatives, tax incentives and investment are in place.  As competition for talent heats up, what happens with the gaming industry in Australasia over the next 12 months is one to watch.

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

Filed Under: Businesses going global Tagged With: Australia, Business Growth, digital, Industry insights, Market update, Politics

One of the hot topics of conversation and cause of much debate in service and tech businesses across North America is what to do about the work-from-home phenomenon post-pandemic. Spearheaded by tech companies like Google, many businesses are now reversing or considering reversing previous policies about flexible working. This has been a result of more data coming to light about the balance between the productivity of working from home, the innovation that comes from face-to-face interaction and the disparity between roles that can and cannot be done remotely.  

Mothers’ Day this month sparked articles about the particular challenge for working mothers and just how many say they are considering downshifting their careers or dropping out of the workforce entirely due to the ongoing burden of caring for family and schooling children. This shift in the demographics of the workforce may put workplace gender diversity strategies at risk for years to come.  

For Kiwi companies with employees in North America, one thing for sure is that it will be tough to retain 100% of employees no matter what they decide. Some staff may have moved to a new city or state to be with family or to save money on rent or mortgages. Talent will be reshuffling as employees decide if their current workplace strategy fits the lifestyle they need to juggle all their commitments.  Staff in one country will be looking closely at their organisation’s employment policies in all countries and holding employers to account.  The number one recommendation from McKinsey to business leaders right now is to communicate with your people. Clear communication to teams about their near-future working environment is critical and helps alleviate burnout and anxiety related to uncertainty. 

With all the noise, confusion and mixed messages about the future of work in the media, this is one step employers must take. 

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

Filed Under: Businesses going global Tagged With: Business Growth, Industry insights, Market update, Politics, Remote working, United States

Tell us about Mānuka Essentials and what drove you to launch the business?

Mānuka Essentials is a plant based personal care brand using renewable plant extracts, the key ingredient being East Cape mānuka oil. 

It all started when I was overseas backpacking around South East Asia. I somehow ended up going down a rabbit hole of scientific research papers on native plants. I discovered that mānuka essential oil which comes from the leaves, is much more powerful than the honey and has many health benefits. East Cape mānuka oil in particular, because of the environment that it has evolved with, provides a lot of benefits – antibacterial, anti-inflammatory, beats dandruff, among many others. This is in part because of a particular group of compounds called beta triketones.

I then discovered that mānuka plays a significant role environmentally. In New Zealand, mānuka is often the first plant to grow in a regenerating native forest (also known as a seral species). It helps other plants flourish, and it grows deep and flexible root systems that prevent erosion, binds hillsides, and helps to clean up our waterways. 

In my previous job working for the family company as a sales rep (selling flooring to shops), I regularly travelled around most of the country. I saw how much of our land was once forest. I also saw how much of it we chopped down. Throughout Aotearoa, we are experiencing land erosion, loss of biodiversity, and polluted waterways… So I thought, if we can make it more profitable for farmers to plant sustainably managed native forests than any other type of farming, then we’re going to see the country return, largely to native forest. 

And so I’ve made it my life’s mission, basically, to do this. 

What was your initial approach to funding? 

I had some savings – tried a range of ideas and ended up spending it all! 

From here, I have been working as a marketing consultant which has supported this venture. This consultancy work evolved into what is now Paste & Publish, a content marketing agency with a team of twelve.

I haven’t tried to get any external investment or funding, mostly because I don’t want the need for short term profits to get in the way of long-term impact. 

Where have you exported to, and what have been the key challenges throughout your export journey across these markets?

Australia was an easy start, and we have a few customers over there. Australia was good in terms of time zone, currency rates are similar, lead times are short, and regulations aren’t overly strict. One of the challenges has been regulatory compliance and understanding who to talk to. There’s a lot of contradictory information out there about regulations and compliance. Understanding cultural and consumption differences was really key as well. 

We considered Europe, however the deeper we dug the more regulatory issues we realised. Compliance was just too much of a challenge at that stage. You really need someone on the ground who holds full responsibility over the product. We saw the costs add up, and ended up putting this on hold. We plan to revisit export into Europe in the next year or so. 

Tell us about your experience with Kea Connect since reaching out in 2019?

It was actually Kea’s introduction that helped us to understand what the export journey to Europe would look like. Through Kea Connect, we were put in touch with a Brand and Industry Specialist with extensive experience across the UK and EU. As a result of his advice, we ended up holding off from exporting to the region and focused our attention on the local market instead. 

This advice highlights how some export markets, while appealing, are not always necessarily the right path right for all businesses. Kea helped us to see the reality we were facing and I was really appreciative of the connection and practical advice that determined our export plans. We also were connected with some initial legal advice, which brought useful considerations to mind. 

The team at Kea are open-minded, proactive, and well-connected. I can’t fault the service! 

How has Mānuka Essentials grown since 2019? 

COVID-19 put a damper on our growth, but in saying this we have expanded our range and offering, which is great. 

When we first engaged with Kea, we mainly produced beard and shaving oil. Since then, we have developed a range of oil blends across genders and skin-types, along with solid beard shampoo and shave soap bars. We have also launched a brand called Mānuka Sensations which focuses more on the aromatherapy side of things. 

Moving forward, we are focusing on creating an enterprise that builds the leading native plant brands of tomorrow. This involves development and operations management, marketing and distribution. Through this new structure, we are launching a wide range of exciting initiatives!

Are there any trends that you see from the entrepreneurs and businesses you’re working with day-to-day?

Going online is a big part. Through our content marketing agency, Paste & Publish, we can’t keep up with the amount of growth in terms of people wanting top notch content. Adoption of tech is massive. Initiatives like Digital Boost alludes to how Kiwi businesses are typically behind the curve on this front.

A larger trend I see is more conceptual, looking ahead 5-10 years. This is around access vs ownership of business processes. Back in the day, you would have your commercial building, your own machinery, equipment, trucks, etc. Back then, you had salaried staff as opposed to contractors or outsourced partners, and those staff would typically stay with you their whole career. Now we are moving towards a much more transient world.

A great example of this is Fulfilment by Amazon. If you want to sell overseas, you don’t need warehouses or space, or staff. Amazon brings the traffic to you, they store it, they ship it. Growth made easy.

So, with business, it’s more about partnering with what and who you really need, and contracting out business processes that aren’t your core area of expertise. In this way, the world is at your unique advantage. 

You have a few  other ventures on the go – can you briefly tell us about these, and what advice do you have for other entrepreneurs juggling many things at once!

Yes sure. As I mentioned before, the overall goal is to reforest Aotearoa. To do this, we need to create widespread consumer demand for native plant extracts so that there’s a market to justify farmers investing in making the shift. And to create this consumer demand, we need brands to tell the story and empower the change.

So we are building a brand incubator. There are three key pillars to any product based brand:

Development and operations – I have recently partnered up with Jess Elliot, the creative genius behind Boho Body Care, to develop what we are calling ‘Boho HQ’, a local business based in Tauranga that looks after product development, manufacturing, logistics and sourcing all under one roof. Basically, if you want to create your own personal care brand, we do all the work to bring your vision to life – from development to marketing and everything in between.

Marketing – through Paste & Publish, we look after all things marketing. Content (such as articles, guest blogs, strategic content planning etc.) is our core strength, but we also do design, web development, advertising, and much more.

Sales and distribution – we are assembling a nationwide network of distributors so that we can bring out new products, new brands, and new offerings, and have them represented in retail locations throughout the country. This project has just launched a few weeks ago, and our aim is to assemble an awesome team of distributors who own their own wholesale businesses supplying our products. You can find out more about becoming a distributor here.

Last but not least is The Reforestation Fund, a philanthropic fund that we are building to help accelerate the reforestation movement here in NZ. Through TRF, we are funding projects that result in native trees being planted, and our biodiversity to be cared for, by supporting local volunteer groups and the like. As part of our efforts, 50 cents from every Mānuka Essentials product sold is donated to this fund. We want to bring more ethical brands onboard, to help make a positive impact on the health of our ngahere (forests).

My advice to other entrepreneurs is that there will be a time where you go from being the business, to being part of the business. Learning when to let go is important, and so is finding the right people who share your vision, and empowering them for success.

One thing that set me well is understanding our core values and core purpose and making decisions from this basis. It ensures that we do things for the right reasons, and with our long term goals in mind.

If there are any returning Kiwi who want to start their own company, distributing native plant-based personal care products in their area, we would love to hear from them.  We are also always looking to partner with people who are passionate about reforestation and would like to get involved. All the details of our distributor programme can be found at www.manukaessentials.com/pages/become-a-distributor.

CONTRIBUTOR

Callum Armstrong

Managing Director

Manuka Essentials Limited

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses going global, Businesses growing at home, Kea Connect success stories Tagged With: Callum Armstrong, Kea Connect, Manuka Essentials

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